MassMEDIC Program. Optimizing Sales and Services for Competitive Advantage. June 5 th, IBM Corporation

Transcription

1 MassMEDIC Program Optimizing Sales and Services for Competitive Advantage June 5 th, 2007

2 Agenda Medical Device Industry - Sales & Services Trends (Simon Goodman) Program Overview (Prasad Rao) Service Transformation (Prasad Rao) Sales Transformation (Simon Goodman) Questions 2

3 Medical Device Industry Trends MDI is going through a rapid consolidation. Bringing in newly acquired companies under single FDA-approved process is every acquiring company s utmost priority. As there are many small and medium size companies (70% of overall market share) entering into device manufacturing industry, most of the companies are looking to invest in their core business aspects R&D and Sales, Marketing and Service. IBM internal estimates reveal that life sciences companies are investing in a core set of IT solutions specific to their industry. Life Sciences Transformation accounts for approximately one-quarter of all IT spending in the industry with 18% annual spending growth. The future growth estimation by the MDI analysts is 4.4% which is $154.3 Billion by

4 Trends continued The market for healthcare is relatively concentrated, with the top four players accounting for approximately 30% of the global revenues. A considerable percentage of this remaining 70% of the share is combination of small and mid size companies. These companies will be eager to invest in solutions with pre-configured functionality which can support regulated business processes. US region accounts for 46.3% of the global market s value in In comparison, Europe and Asia-Pacific account for 35% and 16.7% of the market s value respectively. 4

5 Trends continued Surgical and medical equipment sales proved the most lucrative for the global health care market in 2006, generating total revenue of $98.1 billion, equivalent to 78.7% of the market s overall value. In comparison, sales of dental equipment generated revenue of $15 billion in 2006, equating to 12.1% of the market s revenue. The compounded annual growth rate of the market in the period is predicted to be

6 Understanding the common pitfalls of CRM projects IT vs Business Driven IT will enable the solution; Business has to drive the project to achieve the planned results Lack of Senior Management involvement Senior management is typically hands-off after the project kick-off Underestimating the Change impacts Users are impacted once-and-done training is never enough The entire Organization needs to be prepared Technology maturity, fit and blend The system the technical components working together to support business processes has to work! Plan for sensible phasing of users and technology to iron out the kinks Post go-live support and user-adoption challenges Support processes need to be in place Proactive vs Reactive, where possible 6

7 Program Overview Case Study: Medical Equipment Manufacturer

8 Executive Summary CHALLENGE A sales and services oriented company Aggressive growth goals Process / infrastructure unable to support growth Manage by intuition, not fact BENEFITS $XX over 5 years Readiness for growth Standard processes Better access to data 360 view of the customer Service management platform COSTS CAPEX = $XX P&L Impacts: 2005: $XXX 2006: $XXX 2007: $XXX Checkpoints release funding Program duration 19 months RISKS Executive commitment Willingness / ability to change Becoming a data-driven business User adoption Losing our entrepreneurial spirit 8

9 Project Concerto PMO Order Entry/Mgmt Process Improvement (0M) Handheld Device Selection Core Template Design Sales Deployment Cytyc Sales Pilot (Pilot) Cytyc Sales (TP & NS, 2a & 2b) Cytyc Sales Analytics (Staggered) Cytyc Sales Deploy ThinPrep Service Deployment Cytyc Legacy Integration -POC Cytyc Service (SE1) Cytyc Field Service POC Cytyc Service & Marketing (SE2) Marketing Deployment (M1/2/3) Cytyc Marketing (M1 & M2 & M3) Incentive Compensation Incentive Compensation 30 days of Validation budgeted for S1 & SE2 Sep 4 PI Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun S 3 SE 3 CTD 8 A 3 D 5 B 6 T 5 I 4 A 3 D 6 B 6 T 6 I 6 A 2 P 6 I 2 D 4 B 7 A 6 D 10 B 9 T 12 I 2 I 4 A 3 P 7 I 3 I 1 A 5 B 8 T 13 I 3 To fill capability gaps, we must prioritize initiatives into a phased transformation roadmap IDENTIFY IDENTIFY GAPS GAPS Benefit Driver Capability Groupings Initiatives Sales Planning Contact Management Activity Management Account Management Sales Forecasting Opportunity Management Territory Management Sales Reporting Handheld and Wireless S1 GROUP BY GROUP BY CAPABILITY CAPABILITY SALES FORCE EFFECTIVENESS Effectively plan and deliver the right message in calls on the appropriate target customers and consistently capture useful information to share and leverage for improved and productive future interactions Order Inquiry Order Status Contract Inquiry Quote Inquiry Price Inquiry Compensation Plans Compensation Engine Compensation Predefined Queries Compensation Analytics S2a S2b ICM High OM M1 S1 Cost Key S2b SE1 Prioritization PRIORITIZE PRIORITIZE INITIATIVES INITIATIVES High Med Low Operational Benefit M2 M3 ICM SE2 S2a 1. S1 2. SE1 3. M1 4. OM 5. SE2 6. S2B 7. ICM 8. M2 9. S2A 10. M3 Low Complexity High IMPLEMENTATION IMPLEMENTATION ROADMAP ROADMAP 9

10 The Capability Maturity Model illustrates significant gaps faced in achieving our future state vision Leading Maturity Levels Target State Optimizing Practicing Capability Gap Developing Note: Domain averages shown Aware Current Target 4. Marketing Effectiveness 3. Segmentation & Targeting 2. Customer Information & Analytics 1. Marketing Strategy 5. Order Management Support 4. Integrated Returns 3. Timely Query Management 2. Order Processing 1. Order Entry 7. Information & App. Systems 6. Culture & Organization 5. People 4. Entitlement Verification 3. Problem & Service Level Mgmt. 2. Service Delivery 1. Field Service Strategy 5. Entitlement Verification 4. Information & App. Systems 3. People, Culture & Organization 2. Facilities Management 1. Contact Center Strategy 7. Profitable Sales 6. Usability 5. Sales Support 4. Execution 3. Loyalty and Retention 2. Customer Acquisition 1. Sales Strategy Domains A. Sales B. Contact Center C. Field Service D. Order Management E. Marketing Functions 10

11 Technology Benefits CURRENT Multiple systems to manage Inefficient ability to scale as the company grows Many one-off applications and patches FUTURE / VISION Sunset of multiple legacy systems A unified systems environment Scalable and flexible Leading practices built in Islands of data to manage and support 11

12 Technology Architecture Field Service Handheld Sales Handheld Device Complaint Investigation ERP SIEBEL Siebel Analytics Reporting Enterprise Reporting Data Warehouse Retired Systems Quote and Contract Management Legacy CRM System (Lab) Legacy CRM System (Office) Legacy CRM System 12

13 Global Delivery for Sales and Service Medical Device Company Program management IBM Onsite Project management IBM Siebel GDC Team management Define User requirements (WHAT) Define Siebel System requirements (HOW) Functional Design Review Business Release Management Review/Approve Functional Design Functional Design Functional Test case Effort Estimation / Impact Analysis Effort Estimation Review/Signoff Technical Design Technical Design Review/ Signoff System Integration Test Build & Unit Test User Acceptance Test Deployment Change Mgmt, Configuration Mgmt, Environment Setup and Mgmt, Documentation Mgmt, Methods and Tools 13

14 Service Transformation Prasad Rao - IBM

15 Benefits for the Future Customer Support FUTURE / VISION A new Tier 1 customer support function is deployed Tier 1 agents accept all calls, are trained to solve or route as appropriate Tier 1 agents will be entry level Consolidation of capabilities into Tier 2 support functions 15

16 Benefits for the Future Technical Support & Field Service FUTURE / VISION Systematic, integrated service management system w/ tools, processes and metrics: Increase phone fix rate, reduce visit rate optimized dispatch and call handling Real-time service data and trending service agreement status (entitlement) Optimize field service inventory / reduce service time and cost FSEs receive weekly customer listings of service contracts nearing expiration and pursue future business potential 5-Year NPV = $XXM 16

17 Tier Service Delivery Model-Agent Grouping and Characteristics Field Service Coordinator Call Flow Tier 3 Tier 2 Technical Support Support Specialist Finance Department Clinical Affairs Investor Relations Customer Service Clinical Specialist Internal Sales Tier 1 Universal Agents 17

18 Service Implementation A number of leading practices were referred to and implemented during the definition of To Be processes. These bring about significant process improvements (on completion of implementation) in the contact center and dispatch areas, for example: Development of a tiered service delivery model Single ownership of service request Transfer of activities from tier to tier 40 different call types maintained in Siebel Tiered Service Delivery Model for Call handling Auto assignment of Calls based on Skills and availability of the FSE Interfaces between Siebel and ERP to exchange data across the applications Territory Administration maintained in Siebel 18

19 Siebel Audit Trail Features Audit Scope Audit Trail Content Parent-Child Associations for Audit Siebel Audit trail option was discussed with business team and they approved implementing this solution. 19

20 Audit trail was enabled on Service Requests SR #: 1-1KVDX Modification: New SR (SR Category/SR Type) and New Activity (1-1KVE4) Captured in Audit Trail (see highlighted record below): Y Status: Passed 20

21 Installed base re conciliation reports help Asset Management 21

22 Overall Test Approach The Test execution approach will follow the high level method depicted below. Different types of testing will be performed and tasks and deliverables related to each type of testing will be represented and monitored in the master project project plan. Test Execution Regression Testing(T3) -Sales UAT Test Scripts will be executed System Testing (T3) Conversion Testing (T3) Perf. Testing (T3) Integration Testing (T3) -Siebel,QAD,VETTRO,Qualcyte Teams will be involved UAT/validation Testing(T3) UAT/Validation Equipment (PCs, Blackberry devices, Lab) In place (See Slide 14) Go-Live Break/Fix Development (Defects in D2) Manage Infrastructure and Environments 22

23 Sales Transformation Simon Goodman - IBM

24 Benefits for the Future FUTURE / VISION Common tools, processes, and data Fact-based decisions Less time spent on administrative duties Technology will allow the Rep can do his typical day-to-day call activity planning and tracking from the palm of his hand Future rolling forecasts 180 days Reporting capabilities enabling a full picture of the business Customer retention actively tracked Standard set of compensation approaches systematically track progress against goals 5-Year NPV = $XXM 24

25 Project Summary Key Challenges up Front The Company has grown to date via acquisition resulting in disparate systems, non-integration technologies and silo-ed business processes. Three silo-ed business units with varying levels of maturity in the sales business processes (ranging from almost non-existent to some documented business processes) Dated technologies supported by an immature IT organization spanning multiple vendors which resulted in duplication of data in stand alone data-marks when data was needed to be exchanged between legacy systems 3 Key Technical Components of the Implementation 1. Siebel emedical Sales Force Automation Focused around Business Planning/Objectives, Opportunity Management, Call Planning and Tracking, and Forecasting Flexible design to support core vs business-unit specific requirements & processes 2. Antenna HandHeld Enabling real-time wireless access to critical Customer-related data anywhere any time on BlackBerries and (Palm) Treos 3. Siebel Analytics (Data Warehouse) Reporting Focused on summary and detailed sales trending reports, showing Forecasts vs Actuals 25

26 Solution Overview (2) Antenna Software HandHeld / Wireless Medical SFA Application Main Accounts Contacts Activities Search Results: Accounts Contacts Opportunities Open Search Settings Exit Ad-Hoc Slicing & Dicing Sales Trending Reports Forecast vs Actuals Reports Pipeline Reports Call Activity Reports (3) Siebel Analytics Reporting Dashboards and Toolset (1) Siebel emedical Sales Force Automation Application Business Objectives / Planning Account Profiling Opportunity Management Activity Planning & Tracking Forecasting Sales Reporting Siebel emedical 7.8 Siebel Analytics SAP EDW Cognos Reports 26

27 Leveraging out-of-the-box Siebel was a guiding principle Our overall approach was to stick to out-of-the-box and minimize customizations as much as possible: Where possible, promote and utilize the use of standard Siebel functionality. Focus on the set of standard Siebel Tools and Workflow-based configurations to support the inclusion of the prioritized set of application requirements. Prioritize and minimize the code-heavy customizations that are required to implement complex business rules, and which typically take longer to develop and test, and which are more expensive to maintain long-term. Where high-priority customizations to out-of-the-box were required, detailed annotated storyboards were used to ensure clear and consistent designs, understood by all. Promote & Utilize Accounts:Addresses Sample Storyboard Prioritize & Focus Prioritize & Minimize Will NOT be Pre-populated. Will unlikely be used Specifications: except in the Hospital Screen: Accounts:Addresses Example. Configuration Changes: Add additional field, Address Type with drop-down values Reference List Of Values spreadsheet for values Warehouse Loading Dock Reception List Of Values to be finalized mid May during Design Not a Required field; Rep entered (no conversion); Informational only does not drive any downstream processing or logic This is to be monitored as it is used. Out-of-the-box functionality Siebel Tools Configurations, Siebel WorkFlow Customizations Comments/Notes: This configuration is most relevant for Hospitals which can have multiple addresses that can sometimes be blocks apart. The selected Account is summarized in the top applet Since the Sales Rep (particularly new Reps) may not be able to easily identify the address, multiple addresses and are displayed in the lower applet, with the associated Address Type 8 27

28 Project Results People and Process Alignment of processes and technology to support current sales forces (~350 Users) as well as growth strategy. Over time, Users will find their own way to use the system even if not quite as trained, and not as a standard this is a good thing! Technology Users loved the HandHeld application great enthusiasm Application customization performed in an efficient/cost-effective way, using a blended team of USbased and global resources 28

29 Thank You! 29